Governments should be 'arming themselves' to deal with Bitcoin, says ex-Goldman Sachs CEO

Charlie Taylor

On Monday (January 25), Lloyd Blankfein, former president and CEO of Goldman Sachs, said in an interview that if he were a financial regulator, he would be "arming himself" to deal with Bitcoin, the largest cryptocurrency on the market .
His comments were made during an interview with Andrew Ross Sorkin when he was asked if his views on bitcoin had changed. Blankfein started by saying that Bitcoin was not good as a store of value.

It could work, but really at the end of the day, the currency should do a few things. It must be a means of exchange and a store of value … Your (bitcoin) value can move 10% in one day, and if you lose the code or piece of paper, it will be lost forever, or if someone take it from you, how will you know? So its value reserve feature is a little bad.

Read more: Paper wallet and other ways to store your bitcoins
Lloyd pointed out that "if (bitcoin) ever became big enough to be substantial and a real medium of exchange", it would become difficult for regulators to deal with money laundering and "monitor who is being paid in the financial system".Alter - Cryptoback
The former banker, however, admitted that Bitcoin could "work well in the long run", but that it would mean sacrificing "freedom and a lack of transparency." Lloyd goes on to say:

If I were a regulated I would be hyperventilating with (Bitcoin) success at the moment and arming myself to deal with it.

On June 20, 2018, during a talk at The Economic Club in New York, Blankfein suggested that he could see a future where cryptocurrencies are accepted:
“Look at the evolution of money… you start with gold as money and people only accept hard currency and you make gold coins and a gold coin was like five dollars and five gold dollars.
And eventually, they would give you a piece of paper with the promise that there would be five dollars in gold to support the five dollar piece of paper and you could come in and rescue it. Then they gave you a piece of paper and said that there is five dollars in gold, but you cannot redeem them. And at some point, they give you the paper and say ‘worth five dollars, we won’t redeem it, we don’t even have the five dollars, even if you want to’, and we’re still doing it today.Alter - Cryptoback
I see this transformation and I am saying that if you could go through this transformation, if you could go through that fiat currency where they say 'this is worth what it is because I, the government says it is worth it', why could there be no consensus?"
He then added that he did not own any Bitcoin, but that did not mean that Bitcoin could not succeed:

And then it's not for me … I don't do that. I don't own Bitcoin. Goldman Sachs … doesn't have Bitcoin, but if it works, I could give you the historical path to why it could have happened.

Read more: Tether engages in “false advertising”, shows journalistic research


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